What is the name of your state? Connecticut
I have a friend who is 25 years old. He is a recent college grad and is physically disabled and needs to hire people to assist him with both personal care activities (such as dressing, bathing, eating) as well as professional activities (such as making phone calls, driving to business meetings, etc.). He has a good job with a healthy income, and some assets inhereted from his great uncle that he invests and manages successfully. However, he is concerned that his assets are at risk since he hires employees, although he has no current threats against him. He would like to find a way to protect these assets from the liability judgments that can occur down the road.
He came up with the idea of setting up an LLC to act as his own _home health_ agency so that the people that he hires would be employed by his LLC instead of him personally, and he would use his assets to invest in the LLC so that the company could pay its expenses. He would follow all of formalities of the LLC and avoid co-mingling his personal assets and the LLC_s assets. However, a CPA squashed this idea saying that the LLC would not protect his personal assets since he would be the source of all of the income for the LLC instead of having any third party income be the source of funding.
So my first question is- can there be a way for my friend to fund the LLC without commingling and thus putting his personal assets at risk? I have read about if regular investments and withdrawals are made, this can avoid co-mingling. My friend also had idea of the LLC sending him an invoice. Would these ideas or any other funding strategies, avoid co-mingling?
The CPA went on to suggest putting some assets into a LLC that will act as my friend_s investment company and shield those assets from personal liability claims against him. Wouldn_t those assets still be at risk since my friend would be the manager of that LLC?
Thanks in advance for your help.
I have a friend who is 25 years old. He is a recent college grad and is physically disabled and needs to hire people to assist him with both personal care activities (such as dressing, bathing, eating) as well as professional activities (such as making phone calls, driving to business meetings, etc.). He has a good job with a healthy income, and some assets inhereted from his great uncle that he invests and manages successfully. However, he is concerned that his assets are at risk since he hires employees, although he has no current threats against him. He would like to find a way to protect these assets from the liability judgments that can occur down the road.
He came up with the idea of setting up an LLC to act as his own _home health_ agency so that the people that he hires would be employed by his LLC instead of him personally, and he would use his assets to invest in the LLC so that the company could pay its expenses. He would follow all of formalities of the LLC and avoid co-mingling his personal assets and the LLC_s assets. However, a CPA squashed this idea saying that the LLC would not protect his personal assets since he would be the source of all of the income for the LLC instead of having any third party income be the source of funding.
So my first question is- can there be a way for my friend to fund the LLC without commingling and thus putting his personal assets at risk? I have read about if regular investments and withdrawals are made, this can avoid co-mingling. My friend also had idea of the LLC sending him an invoice. Would these ideas or any other funding strategies, avoid co-mingling?
The CPA went on to suggest putting some assets into a LLC that will act as my friend_s investment company and shield those assets from personal liability claims against him. Wouldn_t those assets still be at risk since my friend would be the manager of that LLC?
Thanks in advance for your help.